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Paul Reed Smith of a company called PRS Guitars said it best most guitars cost 200$ to make and it's what we put on it that makes the price go up

sure there are cheaper guitars than 200$ but it depends on the materials you use , the country you make it as lets face it paying Chinese factory workers is much , much cheaper than say American. If your company grows it's own wood and makes it's own parts you can make them for next to nothing. But if you are an up and coming guitar builder it can set you back around 200$ minus tools used , time and effort.

At this day and age it's all digital cutting wood , check this out This takes around 20 minutes , than just attach a neck and so forth. That machine costs as much as a car ..around the 20,000$ area.

http://www.YouTube.com/watch?v=4Fikcxmnn8Q

"custom shop" guitars where you pick everything is 700$ and up depending on how in dept you are with how custom you want the guitar it can cost 1000s of dollars. My friend worked for a company called strictly 7 guitars and a custom guitar for a famous youtube player would have set the public back around 1900$ canadian.

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